Topps Tiles, the Leicester-headquartered tile specialist, has acquired of 80% of the issued share capital of Strata Tiles, a supplier of tiles to the commercial market, in a deal worth £5.3m. The acquisition also involves the grant of put and call options relating to the purchase by the Group of the remaining 20% of the issued shares in Strata, which are exercisable in 2021.
With offices in Guildford and a showroom in Bermondsey, Strata is located close to its customer base within the architecture and design community. Key market segments include transport, retail, building cladding projects, university buildings and residential apartment blocks.
Established in 2002 by Jonathan Wiles and Paul Wallis, who will remain with the business, Strata will be integrated into the Group’s Commercial business unit, established following the acquisition of Parkside Tiles in August 2017. The Strata brand will be retained.
The acquisition of Strata will add additional scale to Topps Tiles’ fast-growing commercial business as it seeks to build a leading position in the commercial tile market.
In the financial year ended March 2018 Strata reported turnover of £4.8m and profit before tax of £0.7m (unadjusted).
Matthew Williams, Chief Executive Officer, said: “Our commercial business is already expanding at pace, with sales in the first half growing by around three times year on year. The acquisition of Strata will accelerate this expansion and demonstrates our commitment to building a commercial business of quality and scale. Strata is a well-regarded and well-run business with a strong brand; and we look forward to welcoming the Strata team into the Topps Group.”